When you get your electricity or gas bill, most of us look straight to the usage charges—how much electricity or gas we’ve actually used. But tucked into every bill is something a little sneakier: the standing charge.
So, what is it?
What Is a Standing Charge?
A standing charge is a fixed daily fee that energy retailers charge just for being connected to their service. You pay it whether you use energy or not. It covers things like:
- Maintaining the poles, wires, and pipelines
- Reading your meters
- Admin costs to keep your account running
You’ll find standing charges on both electricity and gas bills—and if you’re connected to both, that means you’re paying two daily charges, every single day of the year.
How Much Is It?
Standing charges vary depending on your energy provider and where you live, but typically range from:
- Electricity: $1.16–$1.43 per day
- Gas: $0.70–$1.00 per day
If you have both electricity and gas connected to your home, you are paying somewhere between That means even before you’ve flicked on a light or lit the gas stove, you’re paying around $675–$885 per year just for being connected.
Of that amount, your connection to gas is costing you between $255 to $365 per year.
Why Reducing Standing Charges Matters
You can’t negotiate your standing charge—it’s fixed by your retailer. So the only way to reduce that part of your bill is to eliminate it altogether. That’s why so many households are choosing to ditch gas entirely.
Going all-electric means:
- One standing charge instead of two
- Fewer bills, less complexity
- Better compatibility with solar power and battery storage
- Safer homes (no gas leaks, no carbon monoxide risk)
- A future-ready energy setup, as gas is phased out in many regions
And thanks to modern appliances like induction cooktops, heat pump hot water systems, and reverse cycle heating and cooling, it’s never been easier to make the switch.
Want to Start Reducing Your Gas Dependence?
Check out our Goodbye Heating Vents Kit — the perfect first step for sealing off unused ducted gas heating systems. Every small step takes you closer to a simpler, cheaper, and cleaner energy future.
People Also Ask:
❓1. Can I reduce my standing charge without switching providers?
Not really. Standing charges are set by energy retailers and are generally non-negotiable. You can shop around for a new retailer – but they all have a standing charge. The most effective way to reduce them is to disconnect from unnecessary services—like gas.
❓2. Will getting off gas really save me money?
Yes! By going all-electric, you eliminate the daily gas standing charge, which adds up to $255–$365 per year. Plus, electric appliances can be more efficient and solar-compatible.
❓3. Is it expensive to switch to an all-electric home?
There’s an upfront cost to upgrading appliances, but many people make the switch in stages. Products like induction cooktops, hot water heat pump systems and reverse cycle air conditioners are efficient, clean, and future-proof.
What’s Next?
We hope this article has helped you learn how to remove standing charges from your household energy costs. This in turn will help you on your energy and thermal efficiency retrofit journey to make your home more comfortable all year round, and reduce your costs and carbon emissions.
Next, explore Getting of Gas .. and Here’s How and Why
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